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What is an Unquoted Public Limited Company? Meaning and Example

An unquoted public limited company is a public company whose shares are not freely traded on stock exchange(s) or in over-the-counter (otc) markets. Otherwise popularly also known as "unlisted public company".

>> What is a Quoted Company?

A quoted company i.e. a publicly traded/held company is a company who list their securities in stock exchanges or otc markets to raise funds through the sale of securities in the primary or secondary market. This process generally starts with an initial public offering (IPO) and later may happen with further issue of shares.

>> Why can't every company be Quoted company?

In order to list shares in stock exchanges, there are several requirements to be fulfilled by a company viz. profit in preceding years, net worth, tangible assets, issue size, min. bid price, number of shareholders, number of shares, etc.

Not all companies satisfy all these requirements as prescribed under the securities laws of their country and hence, they do not qualify to be listed in stock exchanges and therefore, they remain as the unquoted public limited companies.

>> Examples of unquoted public limited company

All the public limited companies, which are not quoted companies, are unquoted public limited companies.

Some of the popular quoted companies are Amazon, Microsoft, Fiserv, Adobe, Intel, Apple, Comcast, Starbucks, PayPal, etc.

In the NASDAQ website, you could find the list of some unquoted public limited companies who are planning to issue IPO. Hence, after the success of their IPOs, these companies will become quoted companies.

>> Quoted company become Unquoted company

A quoted company may voluntarily apply to delist its securities from the stock exchanges and become an unquoted public limited company.

Otherwise if after listing of their securities, if they violate any conditions of the listing then they may be forced to be removed from the stock exchanges from trading their shares for the default and they'll subsequently become an unquoted public limited company.

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